Fed Interest Rate Decision Expected
The US Federal Reserve will announce its first interest rate decision of 2026 tonight. Markets believe it is almost certain that interest rate cuts will be paused. Ahead of the decision, the central bank’s independence, the new chair nominee, and whether Jerome Powell will continue in his role are among the main topics on the agenda. Gold prices have reached new highs, while the US dollar index has fallen to its lowest level in four years. Increasing uncertainty in global markets indicates that investors may face another major wave. The Fed’s decision is expected to be decisive for pricing in this environment.
Institutions Predict Fed Interest Rate Decision: No Change in Interest Rates Expected
Leading global financial institutions expect the Fed to keep its policy interest rate unchanged at its upcoming meeting. The consensus view among institutions is that there is no significant deterioration in the labor market and that the inflation outlook is prompting the Fed to remain cautious.
- Macquarie states that the decline in the unemployment rate supports the Fed’s decision not to change interest rates.
- Goldman Sachs forecasts that rates will remain unchanged and that the Fed may only make a limited adjustment to its monetary policy stance.
- Nomura Securities does not expect any change in interest rates but states that forward guidance will continue to signal a higher threshold for rate cuts.
- Oxford Economics expects economic growth to recover this year and believes the Fed will not change its policy until at least June.
- Citibank emphasizes that Fed Chair Powell’s tone will be critical rather than the interest rate decision; in particular, how open he is to future rate cuts will be closely watched.
- Barclays states that employment and inflation data are not sufficient for a new rate cut and that the FOMC will first want to assess the effects of previous cuts.
- Rabobank reports that the vast majority of the Committee believes that the three “insurance” rate cuts made at the end of last year were sufficient.
- JPMorgan predicts that there will be no rapid deterioration in the labor market and that stability in the unemployment rate will keep the Fed in a wait-and-see position.
- Morgan Stanley believes that the decision text could upgrade the economic growth description from “moderate” to “solid” and remove the emphasis on downside risks to the labor market.
- KBC states that downside risks in the labor market have decreased and real GDP growth expectations have risen, indicating that this weakens the need for an interest rate cut at the January meeting.
Digital Euro Emphasis
European Central Bank Governing Council member Piero Cipollone highlighted the need for a digital payment system led by Europe. Cipollone defined the digital euro as a digital form of public money. The decline in the share of cash transactions to 24% shows that this transformation is accelerating.
European Payment Infrastructure
Piero Cipollone stated that increasing geopolitical tensions have heightened the importance of a European payment infrastructure. The statement emphasized the need to reduce dependence on non-European suppliers. The digital euro is considered a key element for a retail payment system under full European control.
Tether Gold Gains
According to Jefferies, Tether’s gold assets gained over $5 billion in value. It was reported that Tether held approximately 116 tons of gold as of the end of September, valued at $14.4 billion. The rise in the price of gold to over $5,200 per ounce supported this increase.
South Korea Crypto Fund
The South Korean Financial Services Commission discussed establishing an investment fund to improve the governance of cryptocurrency exchanges. The plan involves pooling a portion of the exchanges’ profits into this fund. The proposal is currently at a conceptual stage.
Korean Exchange Concentration
The top five won-based crypto exchanges in South Korea control over 90% of the market. Therefore, it is stated that the investment fund proposal may only apply to large exchanges. It is noted that the regulation aims to address monopoly issues.
ANAP Bitcoin Purchase
Japan-based publicly traded company ANAP Holdings purchased an additional 70.44 Bitcoin. With this purchase, the company’s total Bitcoin holdings reached 1,417.03. ANAP Holdings is a prominent clothing company listed in Japan.
Ethereum Hegota Proposal
Ethereum researcher Thomas Thiery proposed the FOCIL mechanism for the Hegota upgrade. Fork Select Forced Include List (EIP-7805) aims to increase the network’s censorship resistance. The mechanism allows validators to force the inclusion of transactions.
Ethereum Censorship Resistance
The FOCIL proposal aims to reduce Ethereum’s dependence on centralized block producers. The Hegota upgrade is planned to launch later this year, following Glamsterdam. Censorship resistance is one of the key highlights of the upgrade.
Wisdomtree Solana Expansion
WisdomTree announced that it has expanded its tokenized funds to the Solana blockchain. The company aims to support multi-chain development. Institutional and individual investors will be able to access tokenized funds on Solana.
Wisdomtree Tokenized Funds
Investors will be able to issue these funds through WisdomTree Connect and WisdomTree Prime. Trading and custody operations can be performed through the platforms. The expansion aims to increase institutional interest in the Solana ecosystem.
SSV Staking Upgrade
SSV Network announced that it has launched the SSV Staking upgrade. It was announced that protocol fees will be priced in $ETH. Fees will be tracked on-chain by a decentralized oracle committee.
CertiK Featured in Davos
Web3 security company CertiK was featured on the official website of the World Economic Forum (WEF) in Davos as of January 28. This development is seen as an important milestone in bringing Web3 security infrastructure into the mainstream on a global scale. Davos particularly highlights CertiK’s ability to integrate its academically-based advanced security research into enterprise-level applications.
Aster Token Rewards
- Aster announced that it launched spot trading with USD1 on January 28. At the same time, a reward event was launched that will run until February 4, with a total of 8 million tokens to be distributed. The event offers zero transaction fees and increased airdrop points on certain trading pairs.
- Users will share the reward pool in proportion to their contribution to transaction fees. The maximum reward a single user can receive is capped at 3% of the total pool. A minimum total transaction fee of $5 is required to participate.
Fidelity Stablecoin Move
According to Bloomberg, Fidelity is preparing to launch a stablecoin called FIDD, compliant with the GENIUS standard on the Ethereum network. This step demonstrates the growing interest of traditional financial giants in blockchain-based digital assets. Fidelity’s move could take corporate stablecoin competition to a new level.
